Fed's Gramlich says US can't grow out of deficits (ouch)

[cthrumatrix]

Fed's Gramlich says US can't grow out of deficits

1 hour, 9 minutes ago

The United States cannot grow its way out of its budget deficit problem despite recent improvement in budget and trade numbers, Federal Reserve Governor Edward Gramlich said on Wednesday.

"Fortunately, the budget numbers and the trade numbers have gotten a bit better recently but that doesn't solve the long-term problem," Gramlich said in response to audience questions after a speech to Milwaukee-area business leaders.

He did not discuss the economy or monetary policy in his remarks, which centered mostly on a proposal to rescue Social Security by raising the retirement age in a measured fashion.

Gramlich said the structural problems created by impending retirement costs for the baby boom generation would continue to exist, even if some of the White House's proposals for reform are enacted.


http://news.yahoo.com/s/nm/economy_fed_socialsecurity_dc&printer=1

When you are leaving as a Fed Gov...then you feel empowered to come out and "tell the truth"...funny how that works.

[damntexdem]

1. On the other hand, a change in tax policy ...

;-)

[nolabels]

2. Code speak for there is an Elephant in the room

Oh, but they are so cute when they just babies :cry:


http://www.maxskansascity.com/frontroom.php

[Terran]

3. But...but...

Our Fearless Leader SAID we could, and who are you gonna believe, shrimp??!

:sarcasm:

[gratuitous]

6. Yeah, who knows better? Some economic egghead or . . .

President Gentleman's C?

[wookie294]

4. Very true

The national debt has increased 700 percent since 1980.

But the size of our economy increased by only 100 percent since 1980.

It's been known for 25 years that you cannot "grow" your way out of debt, but lawmakers don't get elected by saying this!

[Mr.Green93]

5. Bill Clinton

balanced the budget and erased the debt. We were in surplus until * gave it all to the rich.

[wookie294]

7. Clinton did not erase debt

But he did obtain a surplus in budget spending. Here's an interesting chart that Repugs can't deny...

http://zfacts.com/p/318.html

[TahitiNut]

8. Correction: Clinton erased the DEFICIT, not the "debt"